XRP Faces Pressure as 41.5% of Supply Experiences Losses

XRP Faces Pressure as 41.5% of Supply Experiences Losses

Summary:
XRP is under scrutiny as analysts highlight that 41.5% of XRP holders are currently experiencing losses. This situation raises concerns about the market's stability, as many investors purchased XRP at higher prices. The upcoming exchange-traded funds (ETFs) are anticipated to drive interest, but as of now, the price remains significantly lower than previous highs.

Key Takeaways:

41.5% of XRP holders are at a loss, with a significant portion of the supply affected.
The current price is around $2.14, down over 40% since the July high of $3.65.
Analysts are concerned about the impact of unrealized losses on market sentiment.
A rebound above $2.70 is necessary for potential recovery.
Upcoming ETFs could influence market dynamics positively, though results remain to be seen.

XRP's price situation could worsen if it doesn't achieve a significant recovery soon. Analysts from crypto analytics firm Glassnode have noted that 41.5% of XRP holders are currently underwater at present price levels.

In a recent post on X, Glassnode reported that the "XRP supply in profit" is at its lowest since November 2024, a period when the price was around $0.53. The firm stated, “Today, despite trading approximately four times higher at $2.15, 41.5% of supply (around 26.5 billion XRP) is in loss. This indicates a top-heavy and structurally fragile market dominated by late buyers.”

Source: Glassnode

Tony Sycamore, a market analyst at IG Australia, shared insights with Cointelegraph, emphasizing that the recent drop in price surprised many XRP investors. He noted that the market’s precarious structure could lead some holders to sell and cut their losses if the downward trend continues.

“There’s evidence suggesting that many XRP holders likely bought their assets when XRP was above $3.00 in January, July, August, September, and early October. Their entry points are significantly higher than the current price of around $2.16,” explained Sycamore. “The more than 40% sell-off from the July high of $3.66 has caught both long-term holders and newer buyers off guard, especially those who purchased during the highs driven by FOMO, expecting the dips to be buying opportunities.”

Sycamore underscored that this widespread unrealized loss is affecting overall market sentiment and increases the risk of more downside movements, as stop-losses and forced sales could amplify selling pressure. “A clear recovery will need a decisive rebound above $2.70,” he stated.

On a brighter note, XRP holders are looking forward to a potential catalyst for bullish momentum: the new wave of exchange-traded funds (ETFs) expected to launch this week. The first spot-XRP ETF by Canary Capital was released last Thursday, achieving the most successful first-day performance for US ETFs in 2025. Furthermore, four more ETFs from Franklin Templeton, Bitwise, 21Shares, and CoinShares are set to debut shortly.

Despite this optimism, XRP’s price has yet to show significant recovery. At the time of writing, XRP is priced at $2.14, reflecting a decrease of more than 40% from its all-time high of $3.65 on July 18.

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